&w=3840&q=100)
Nomura to buy Macquarie's US, European asset management units for $1.8 bn
The Japanese company has had a troubled history in its attempts to expand overseas, including the acquisition of assets from the collapsed Lehman Brothers in 2008 which it later wrote down
Reuters Washington
Nomura is acquiring Macquarie Group's US and European public asset management businesses for $1.8 billion, marking the Japanese investment bank's most ambitious expansion abroad since its failed purchase of Lehman Brothers' assets.
Japan's largest investment bank and brokerage will take over the management of the publicly traded assets, the companies said on Tuesday. It will also take over the investment teams and operating platforms relating to the businesses, and retain the existing management team.
The Japanese company has had a troubled history in its attempts to expand overseas, including the acquisition of assets from the collapsed Lehman Brothers in 2008 which it later wrote down.
But the Macquarie assets deal, which Nomura said is its largest acquisition ever, comes as companies in Japan face a shrinking domestic market and are increasingly seeking growth opportunities abroad.
Asset management has become a core growth area for Japanese financial institutions looking to secure stable fee-based revenue that is less impacted by the ups and downs of market sentiment.
"The market now is very unstable but the biggest factor in our mid to long term plan is to have a robust investment management platform," Nomura CEO Kentaro Okuda told a press conference.
"This transaction had a very prudent due diligence process and should be durable against the volatility of the market," Okuda added.
The announcement of tariffs by US President Donald Trump may lead to a rebalancing of sectors which would provide opportunities for active investment managers, Nomura's head of investment management, Yoshihiro Namura, told the briefing.
The deal is expected to close by the end of 2025 and will be settled entirely by cash with no financing directly related to the transaction planned, Okuda said.
Nomura's previous investments include buying boutique investment bank Greentech Capital Advisors in 2019 and acquiring a 41 per cent stake in investment management firm American Century Investments for over $1 billion in 2016.
Upon the deal's completion, Nomura's total assets under management within its investment management franchise are expected to increase to around $770 billion from approximately $590 billion currently, Nomura said.
Nomura's shares climbed 0.6 per cent on Tuesday morning while the benchmark Nikkei index was roughly flat. Macquarie shares rose around 1.5 per cent.
Macquarie Group, Australia's biggest investment bank by assets, will retain its public investments business in its domestic market, where it plans to continue operating an asset management business spanning both public and private markets.
The Australian financial conglomerate said that, as part of the deal, it would collaborate with Nomura on product and distribution.
Macquarie has been strategically reshaping its North American operations, having already withdrawn from several debt market segments.
It is shuttering its US debt capital markets division, according to multiple media reports in February, pivoting instead to its private credit business, which has already deployed over A$22.5 billion in loans.
"Overall, the transaction sharpens the focus of Macquarie Asset Management back to its competitive strengths - private markets and its home market of Australia," Citi analyst Thomas Strong wrote in a report.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
an hour ago
- News18
Boeing Reacts To Air India Flight Crash: 'We Stand Ready To Support'
Last Updated: Boeing expresses condolences and support after Air India Flight 171, a Boeing 787 Dreamliner, crashed near Ahmedabad. The flight was en route to London. Boeing On Ahmedabad Plane Crash: Boeing, the manufacturer of the aircraft involved in the tragic crash of Air India Flight 171 near Ahmedabad, on Thursday issued a statement expressing condolences and extending support to Air India and investigators. In a post shared on social media platform X, Boeing Airplanes said: 'We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected." We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected. — Boeing Airplanes (@BoeingAirplanes) June 12, 2025 The statement came after a Boeing 787-8 Dreamliner crashed near Sardar Vallabhbhai Patel International Airport shortly after take-off. The flight was en route to London with over 200 passengers and crew on board. All 242 passengers are feared to have been killed in the crash. In an earlier brief statement, Boeing had said it was aware of initial reports of the plane crash in Ahmedabad and working to gather more information even as the company's shares tumbled nearly 9% in a pre-market trading. 'We are aware of initial reports and are working to gather more information," Boeing said in the brief statement. The crash comes days before the opening of the Paris Air Show, a major aviation expo where Boeing and European rival Airbus will showcase their aircraft and battle for jet orders from airline customers. Boeing has been mired in financial and regulatory trouble for more than six years after Lion Air Flight 610, a Boeing 737 Max 8, plunged into the Java Sea off the coast of Indonesia in late 2018, killing all 189 people on board. Five months later, Ethiopian Airlines Flight 302, a Boeing 737 Max 8, crashed after take-off from Addis Ababa, Ethiopia, killing 157 passengers and crew. Boeing seemed to finally be emerging from the deep hole it was in after that pair of crashes, but that now appears to be short-lived. Last month, Boeing announced a pair of major orders in the Middle East during a visit to the region by President Donald Trump. Boeing shares were up close to 25 per cent this year before Thursday's crash. The Air India Flight AI171 Crash Incident The London-bound Boeing aircraft crashed five minutes after it took off from the Ahmedabad airport for the London Gatwick. In a possibly dual-engine failure, the aircraft lost altitude in a residential area near the airport and crashed on a residential building for doctors. All 242 passengers are feared to have been killed in the crash. On the doctors building, the FAIMA Doctors Association said many MBBS students were having lunch at the hostel mess when the plane crashed into the building. The wife of a resident doctor was reported to be dead even as four to five MBBS students and three to four relatives of resident doctors are missing. While two to three students are in intensive care, at least 50 students, who were hospitalised, are stable as of now, it added. Air India confirmed that flight AI171, from Ahmedabad to London Gatwick, was involved in an accident today after take-off. The flight, which departed from Ahmedabad at 1338 hrs, was carrying 242 passengers and crew members on board the Boeing 787-8 aircraft. Of these, 169 are Indian nationals, 53 are British nationals, 1 Canadian national and 7 Portuguese nationals. Air India confirms that flight AI171, from Ahmedabad to London Gatwick, was involved in an accident today after flight, which departed from Ahmedabad at 1338 hrs, was carrying 242 passengers and crew members on board the Boeing 787-8 aircraft. Of these, 169 are… — Air India (@airindia) June 12, 2025 The pilot of the Boeing 787 Dreamliner issued a 'Mayday' distress call, denoting a full emergency, soon after take-off, the Air Traffic Control at Ahmedabad said. Air India also set up a dedicated passenger hotline number 1800 5691 444 to provide more information. 'Air India is giving its full cooperation to the authorities investigating this incident," the airline said. Prime Minister Narendra Modi, meanwhile, spoke to Civil Aviation Minister Rammohan Naidu and Home Minister Amit Shah to take stock of the situation. 'The tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it. Have been in touch with Ministers and authorities who are working to assist those affected," Modi wrote in a post on X. (With inputs from agencies) About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously More First Published: June 12, 2025, 17:45 IST
Mint
2 hours ago
- Mint
Japan and US still far apart in tariff talks, says Japanese Prime Minister
Japanese Prime Minister Shigeru Ishiba still sees distance with the US when it comes to trade talks, according to an opposition party leader who met with the leader to discuss US tariffs. Ishiba is expected to meet US President Donald Trump on the sidelines of the Group of Seven leaders gathering in Canada starting Sunday. Ahead of that potentially key meeting, the prime minister gathered with opposition party leaders Thursday to canvass their thoughts on the American levies. Speaking to reporters after the gathering, Japan Innovation Party co-leader Seiji Maehara said that Ishiba said there is a large gap between the US and Japanese stances, and that he doesn't have a particular timeline in mind for when the two sides may come to an agreement. 'If there's progress before I meet the president, that's in and of itself good,' Ishiba told reporters in Tokyo Thursday. 'But what's important is to achieve an agreement that's beneficial to both Japan and the US. We won't compromise Japan's interests by prioritising a quick deal.' The upcoming summit gathering in Canada is viewed as a potential moment for Japan and the US to reach some kind of an agreement after two months of back-and-forths. Failing to get any kind of deal there could worsen Ishiba's standing ahead of a national election next month as the tariffs threaten to push Japan's economy into a technical recession. Maehara and Yuichiro Tamaki, head of the Democratic Party for the People said that Ishiba also mentioned the US and Japan are discussing Japan's US Treasuries holdings, without elaborating on details. Tamaki told Ishiba that Japan could help US yields stabilize by reinvesting in US bonds — specifically by buying longer-term bonds when current holdings mature. Japan remains the biggest foreign holder of US Treasuries. In early May, Finance Minister Katsunobu Kato's remarks that suggested US Treasuries could be used as a negotiating tool drew great market interest, but later Kato appeared to walk back those comments and in particular the idea that Japan might use the sale of US Treasuries in negotiations. While Japanese party leaders continued to discuss the tariffs' impact, Trump appears to be ramping up pressure. The US president said he intended to send letters to trading partners in the next one to two weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies. For Japan, an across-the-board tariff is set to increase to 24% from 10% on that day barring a deal. The Asian nation is trying to earn a reprieve from a 25% tariff on cars and car parts and a 50% levy on steel and aluminum. Ishiba's top trade negotiator Ryosei Akazawa is expected to travel to North America later this week for the sixth round of negotiations with his counterparts. Still, in a different debate with opposition party leaders held in parliament on Wednesday, Ishiba hinted at how quickly the situation could change.
Hans India
2 hours ago
- Hans India
We Grow for the World, But the World Builds the Brand
In the heartlands of India, harvest season brings its own kind of celebration. Trucks line up at mandis, auction yards come alive, and tonnes of produce begin their journey outward. For decades, this has been the rhythm of rural prosperity - grow, ship, repeat. But within that rhythm lies a silent loss. Because even when India leads the world in growing something, the real value often leaves with it. What we export is volume; what we lose is value. This has played out across sectors. India is the world's largest producer of cotton - but Bangladesh exports more garments. We're among the top growers of turmeric - yet it's American and European brands that turn it into wellness gold. Even with Basmati rice, the leap from staple to premium export came only after years of policy attention, GI protection, and positioning. Tobacco offers a striking example. India grows over 800 million kilograms annually, making it the second-largest producer globally. Yet only about 30% is exported - mostly as raw leaf. In FY 2023–24, India earned ₹12,006 crore (roughly $1.45 billion) from tobacco exports. A respectable figure - until one considers that our share of global tobacco leaf trade value is just 5%, despite producing 13% of the world's supply. The gap becomes starker when we look at what others are doing. Countries like Italy and the UAE, with far less cultivation, dominate the high-value export segments - reconstituted tobacco, heated sticks, and next-generation formats. Global trade in these products (under HSN 240411) crossed $5 billion in 2023. India's share? Virtually nil. The issue isn't just about tobacco. It's about the kind of economic model India is stuck in: one where the farm gate is the finish line. In this model, farmers grow, sell, and exit. The rest - processing, branding, export transformation - happens elsewhere. Which means the most profitable steps in the value chain are taken up outside the country. It's a missed opportunity, not just in income, but in identity. India is a natural agri-export powerhouse - but unless we invest in value chains, not just crop cycles, we'll keep being the supplier, not the leader. The good news is: we've broken this cycle before. When India backed its spice exports with traceability and GI, global demand grew. When we modernised dairy processing, the world started buying Indian cheese and ghee. Where we built regulatory clarity, infrastructure, and incentives for value-added products - sectors took off. The same blueprint can apply to underleveraged crops like tobacco, millets, or even medicinal plants. And the path forward is clear: this is not about growing more tobacco - it's about growing more value from the tobacco we already produce. What's needed is a shift in policy imagination. One that doesn't stop at MSPs or export subsidies for bulk goods — but looks at where real margins lie. That connects export hubs directly to growing regions through logistics frameworks like PM GatiShakti. That digitises supply chains to meet ESG and traceability standards now demanded by global buyers. And crucially, one that updates regulation - not to promote consumption, but to enable innovation and safe, compliant exports. Tobacco is politically sensitive, yes. But it is also a case study in what happens when we grow without building. And it's far from the only one. As Yaswanth Kumar Chidipothu, Chairman of the Tobacco Board of India, aptly noted, 'Only a disciplined approach can help the growers in the long run, particularly in the wake of increase in tobacco production in major nations.' India has always grown with skill. But growth without strategy ends at the border. The next leap must be different. From growing crops — to growing value. Authored by: Dr. Manish Kumar, Head, Dept of Economics, Easwari School of Liberal Arts, SRM University AP, Amravati
